Tata Power, BoB among 6 stocks dropped from MSCI India Domestic Index

Abbot India, Ipca Laboratories, Jubilant Foodworks and Tata Consumer are among the six stocks that have been added to the MSCI India Domestic Index (See document), while there have been five deletions, which include Ashok Leyland, Bank of Baroda, Cummins India Kirloskar and M&M Financial Services.
MSCI India Domestic Small Cap Index (see document), on the other hand, has seen 52 deletions which include BSE, Venky’s India, Jammu & Kashmir Bank, Power Finance Corporation and Dish TV India. IndiaMart Intermesh, Mishra Dhatu Nigam, Nippon Life India and Relaxo Footwears are among the 13 added to this index. Though changes in both these indices have been announced, they will take place as of the close of May 29, 2020.
Domestic equities, according to a recent report by Emkay Global, are expected to see inflows to the tune of $250 million (Rs 1,900 crore) on account of this semi-annual rebalancing of the MSCI India Index, which is tracked by funds worth $14 billion (Rs 1 trillon).

It had anticipated Tata Consumer, Torrent Pharma, Jubliant Foodworks, and Biocon as key inclusion candidates, which it said, are expected to see inflows in the range between $50 million (Rs 380 crore) and $85 million (Rs 640 crore).

PFC completes REC acquisition, pays Rs 14,500 cr to government

Company News

State-owned Power Finance Corporation (PFC) on Thursday completed the acquisition of majority stake in REC Ltd by transferring Rs 14,500 crore to the government, an official said.

The transaction has helped the government meet its disinvestment target of Rs 80,000 crore for the current financial year.

"The entire consideration of Rs 14,500 crore for acquiring 52.63 per cent equity of the Government of India in REC is paid by PFC through RTGS (real-time gross settlement) mode this morning," the official told PTI.

The official said PFC Chairman and Managing Director Rajeev Sharma handed over the RTGS advice to Power Secretary A K Bhalla on Thursday to complete the acquisition.

The money has been transferred into the government's account online.

The official further said the government's 52.63 per cent equity in REC would be transferred in the name of the PFC by the closing of the stock market on Thursday.

PFC has raised money from Bank of Baroda, Life Insurance Corporation and State Bank of India, among others, to make the payment.

Earlier on March 20, PFC had inked a share purchase agreement to acquire 103.94 crore equity shares of Rs 10 each of REC Ltd.


 This deal was in pursuance to the in-principle approval from the Cabinet Committee on Economic Affairs for strategic sale of 52.63 per cent of paid-up equity shareholding of REC held by the government to PFC, along with the transfer of management control.